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Qualcomm (QCOM) - Assessing the Bullish Engulfing Candle

The price action of Qualcomm (QCOM) stocks formed a bullish engulfing candle last Friday. While the 5/1 session candle was relatively 

QCOM Daily Chart

(click to enlarge)

Bullish Engulfer:
- The daily chart shows a market that has been bearish in 2017, though the overall market seems to be sideways for the past 52-weeks.
- Price was again sliding in April until it came close to 50.00, a psychological level where QCOM saw buyers about a year ago.
- Indeed, we should anticipate some short-term rebound after seeing the bullish engulfing candle last Friday. 
- However, I would be careful about the bullish projection.
Sideways Market:
- The weekly chart shows a market that reversed an uptrend in 2014. 
- There is really no long-term trend. 
- We can see a 2016 rally, but the fact that price retreated back below the 200- and 100-week simple moving averages (SMAs) show that the uptrend was weak and that bears are now in control of this market.
Bullish Outlook with Bearish Bias:
- I think upside from the currently developing pivot should be limited to 64.
- I think price would be rejected around 60.
- A break above that makes the 64.00 handle "final line of defense" for the bearish outlook.

Qualcomm (QCOM) Weekly Chart

(click to enlarge)

  • 152 152 correctly predicted forecasts
    Max Grigoryev
    QCOM might be hurt significantly by the disputes with AAPL
    Reply
    1
  • 1 1 correctly predicted forecast
    Fan Yang
    Max,
    More reason to anticipate fading of any rebound this week.
    Reply
    0
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